Steps are officially underway to eliminate loadshedding as the Newcastle Municipality begins its investigations into creating a solar plant.
As reported by Newcastillian News, it was highlighted during the Mayoral Roadshows for the Integrated Development Plan that the Newcastle Municipality is looking into the implementation of an energy generation programme.
This programme aims to generate a minimum of 100 megawatts of electricity through collaborations with independent power producers.
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Looking forward to the programme, Councillor Bertie Meiring detailed the initiative poised to transform Newcastle. Councillor Meiring stated that the Newcastle Municipality is currently collaborating with Vutomi Energy (PTY) LTD, which is partnering with New Phoenix Power, to establish a solar plant in Newcastle.
“We are still in discussions with the power producers and conducting the necessary investigations, but if the engagements go according to plan, approximately 128 hectares of land will be allocated to the solar plant,” explained Cllr Meiring.
He further stated that the land earmarked for the project is situated near the Newcastle Airport.
Additionally, the land will be rented out to the power producer, allowing the Municipality to secure a substantial amount of money every month in rent, thereby enhancing the government’s revenue generation.
Furthermore, Councillor Meiring explained, “There will be no capital expenditure required from the Newcastle Municipality for the project, and the construction of the plant is expected to create over 1,000 jobs in the area.”
This means that not only will the local community benefit from employment during the construction of the solar plant, but the power producers will also provide the necessary funding for the establishment of the plant.
Adding to this, Councillor Meiring explained that the Newcastle Municipality would be able to have a profit share in the solar plant, further enhancing the Municipality’s financial standing. Currently, there is no timeframe for when construction of the plant will begin.
Before the final steps are taken, Councillor Meiring noted that Municipal officials would first investigate sites where Vutomi Energy and New Phoenix Power have created solar plants to ensure that there are no potential issues. Once the Newcastle Municipality is satisfied that the project will be conducted efficiently and the necessary contracts are signed, construction of the solar plant will commence, taking an estimated 24 months to complete.
However, once construction starts, the project will cost in the region of R210 million, which will come from the above mentioned companies, as stated by the Newcastle Municipality.
With the project set to remove the threat of loadshedding, while generating extra revenue for the Newcastle Municipality, Cllr Meiring explained that the electricity tariffs would also be made more affordable for Newcastle consumers.
According to Councillor Meiring, the current buying rates from Eskom stand at approximately R1.43, while the proposed rate from the companies involved in the solar plant is around R1.12 per unit.
“This is an extremely big project for Newcastle. It will mean further investments for Newcastle, as there will be stability in terms of electricity provision through renewable energy. Current businesses and residents will not be impacted by loadshedding, and electricity will be more affordable. Also, if the Newcastle Municipality can provide more land to the companies involved in the project, they can expand and we can then sell electricity to neighbouring municipalities, and further enhance revenue generation and focus even more on service delivery,” explained Cllr Meiring.
As the Newcastle Municipality looks to finalise its investigations in the coming months, what are your thoughts on the above? Share your views in the comments section below.
Comments 2
Ag please !!!! The Newcastle Munisapalaty changed all the meters in boxes . Meaning that we can’t put back electricity to the grid . Now they come with this nonsense!! Why not pay residents for there extra electricity generated by solar panels. Bertie Meyering can’t even fix pot holes in his erea !!! Newcastle Munisapalaty remains useless!!
The proposed solar power plant is great news for Newcastle as we will all benefit from it in times to come where the cost of electricity is running away from all of us at an alarming rate.
The lower cost at which electricity will be made available to all consumers will definitely benefit everyone and there should be no reason for price increases to affect us once the system is operational.
The main concern here is however maintenance and taking care of the system.The system should be protected from vandals as was the case in another town where they went and caused damage amounting to millions of rands to the system by using rocks and other objects to damage it.